Mexico's largest mortgage originator, Instituto del Fondo Nacional de la Vivienda para los Trabajadores (Infonavit), closed its third RMBS on July 15. Sized at Ps1.16 billion ($109 million), the transaction with a twenty year final priced at an inflation-indexed 5.939%, a spread of 122 basis points over a five-year interpolated government curve, according to a source close to the deal. The duration of the deal is five years. With the book oversubscribed by about 2.7 times, public pension funds snapped up 50%, insurance companies took 30%, and company pension funds bought the remaining 20%, according to the source.
BBVA Bancomer and Inversora Bursatil led the deal, which brings total issuance under Infonavit's current Ps4 billion shelf to Ps2.4 billion. Moody's Investors Service and Standard & Poor's rated the deal Aaa.mx' and mxAAA' on their national scales, respectively. Nacional Financiera is the trustee.